PTI New Delhi

Sales growth in Indian FMCG sector slowed to 5.4 per cent in volume during September quarter mired by disruptions due to GST rate changes, though value growth jumped to 12.9 per cent, according to the latest report from data analytics firm NielsenIQ.

The rural market also slowed down from 8.4 per cent to 7.7 per cent year-on-year, but continued to outpace the pace of sales in urban areas for the seventh consecutive quarter, the report said. "The market recorded a 5.4 per cent rise in volume alongside a 7.1 per cent increase in prices, with unit growth outpacing overall volume growth - signalling a stronger consumer preference for smaller packs," it said. 

Urban market, which forms bulk of fast-moving consumer goods (FMCG) demand, is recovering moderately, particularly in smaller towns. Sequentially, it experienced slowdown. Rural market, which is of small packets, is driven by affordability, accounts for around 38 per cent of the FMCG demand.

"Rural India has recorded a 7.7 per cent increase compared to 3.7 per cent in urban areas, outpacing urban regions in volume growth for the seventh consecutive quarter. However, the gap is narrowing as urban areas show signs of sequential recovery," the report said, adding, "this recuperation is primarily driven by smaller urban towns." In the March quarter and September quarter of 2025, rural market had reported a growth of 8.3 per cent and 8.4 per cent, respectively.